Which of the following will shift the consumption function upward?
What will be an ideal response?
an increase in net wealth
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Jenny's weekly income increases from $500 to $650. As a result, she goes out for dinner one day a week instead of one day every other week. What is Jenny's income elasticity of demand for restaurant dinners?
What will be an ideal response?
To classical economists, it is always true that
a. there is zero unemployment. b. actual output is always equal to potential output. c. excess demand for goods is possible unless prices are forced to fall. d. the marginal product of labor exceeds the real wage.
The goal of price discrimination is to
a. Convert consumer surplus to producer surplus b. Maximize profits c. Both a and b d. Make pricing decision difficult
In an unbalanced oligopoly, the sales of the leading firms
a. are unevenly distributed b. are larger than the sales of all other firms c. are larger than their market shares d. are smaller than in a balanced oligopoly e. grow faster than in a balanced oligopoly